Suprajit Engineering share price extended rally and traded over 4% higher on Friday after the company announced its Q4 results. Suprajit Engineering shares jumped over 6% in the previous session, taking its weekly gains to over 8%.
Suprajit Engineering reported a net profit of ₹59.15 crore in the quarter ended March 2024, a growth of 44.23% from ₹41.01 crore in the year-ago quarter, primarily due to higher than anticipated other income and a lower effective tax rate.
The company’s revenue in Q4FY24 increased 12.03% to ₹783.12 crore from ₹699.01 crore, YoY.
At the operational level, EBITDA during the March quarter rose 8.4% to ₹94.4 from ₹87.1 crore, while EBITDA margin decreased by 40 basis points (bps) to 12.1% from 12.5%, YoY.
Emkay Global Financial Services has upgraded the smallcap stock Suprajit Engineering and also raised its target price after the strong Q4 results.
“Suprajit Engineering Q4 performance was strong with 12% growth in revenues and ~5% beat in EBITDA (stable margins QoQ). Growth outlook has improved at global-facing Suprajit Controls Division, with overall consolidated FY25 guidance being of double-digit growth and margins,” said Jaimin Desai, Research Associate at Emkay Global Financial Services.
The brokerage firm has upgraded its FY25E and FY26E earnings per share (EPS) estimates by ~4% and 7% respectively, led by improved growth outlook. It now builds-in 14% and 43% revenue and EPS CAGR over FY24-26E amid market-share gains on industry consolidation, higher content per vehicle (led by new products), healthy order wins, and continued domestic 2W recovery.
The broking house upgraded its rating on Suprajit Engineering shares to ‘Buy’ from ‘Add’ previously and raised target FY26E multiple to ~22x from 18x. It also increased Suprajit Engineering share price target to ₹540 per share from ₹420 earlier, implying an upside of more than 23% from Thursday's closing price.
Suprajit Engineering share price has gained over 6% in the past one month and more than 10% year-to-date (YTD). Suprajit Engineering shares have given 19% returns in one year.
At 10:45 am, Suprajit Engineering shares were trading 2.83% higher at ₹449.80 apiece on the BSE.
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